By Nick Harris

The Argentine coach has said that both he and the second-placed Liga club are keen to agree a new deal, and that talks are progressing in a healthy manner

Atletico Madrid coach Diego Simeone expects he will extend his contract at the club as he revealed that both parties involved are eager to agree a deal.

The Argentine coach has led his team to second place La Liga at the halfway stage of the season, and los Rojiblancos are well clear of their major rivals Real Madrid in third, with Jose Mourinho's team dropping more points in a 0-0 draw at Osasuna on Saturday night.

Simeone has enjoyed plenty of success since joining the capital-based club in December 2011, leading his side to fifth in La Liga, winning the Europa League and beating Chelsea in the Super Cup in 2012.

He told reporters: "I prefer not to comment on the issue of renewal because discussions are healthy right now.

"We are talking, and there is willingness on both sides to renew."

Simeone also said that he hoped Atletico could continue their recent form, as it would make it easier to keep hold of their star players.

He added: "To stay competitive you have to win, because winning gives you more economic stability and makes it easier to keep a competitive team."